This determination, highlighted in a resolution issued by the Government on April 10, reflects not only optimism but also a strategic readiness to absorb external shocks through coordinated and flexible policies.

Amid growing geopolitical tensions, trade disputes and supply chain disruptions, Vietnam is also contending with extreme weather events, inflation and exchange rate volatility. Nonetheless, the Government is calling on ministries, local authorities and businesses to stay optimistic, confront challenges head-on and seize emerging opportunities.

In particular, 37 provinces and cities that fell short of their Q1 growth targets have been directed to reassess their performance and revise strategies for the remainder of the year.

One of the gravest current concerns is the potential imposition of reciprocal tariffs by the US, with rates possibly reaching as high as 46%. Although Washington has granted a temporary 90-day reprieve, the urgency remains.

According to the National Statistics Office (NSO), Vietnam’s exports to the US were valued at US$119.6 billion in 2024, making it the country’s largest export market and accounting for nearly 30% of total exports. The trade surplus with the US stood at US$104.6 billion.

Given the significance of US trade as a key economic driver, any new tariffs could have serious consequences for Vietnam’s major export sectors and overall growth.

In response, the Ministry of Finance is preparing support packages for affected workers and businesses, including a proposed extension of VAT reductions from July 2025 through to the end of 2026. The State Bank of Vietnam is also planning to manage exchange rates flexibly and ensure access to credit for firms under pressure.

Source: Investvietnam